A Study On The Impact Of Small And Medium-sized Enterprises' Shareholding Financial Institutions On Financing Constraints

Since the policy of reform and opening up,through years of tireless efforts,China has developed into an important part of the world's economy.During the process,small and medium-sized enterprises have been playing an essential role in gathering their own strength and making contributions to building our socialist society and spurring economic growth.With the acceleration of the process of world integration,the status of small and medium enterprises in China has also gradually ascended,making more and more important effects.Unfortunately,however,with the rapid development of the commodity market in China,the development process of China's factor markets is slow,especially the immature financial market.Seriously restricted by the property of system of ownership and scales,the belly attacked Chinese small and medium enterprises have become the big loser in the financing competition in China's capital market.There are many factors that lead to the financing constrains of small and medium-sized enterprises,the lack of direct financing channels,the over high entering requirements when accessing to the securities market and the inefficient financing procedures and other reasons.All the factors will keep corporates in the urgent need for funds from the capital market and drive them to indirect financing channels.What's worse,yet,the monopoly of state-owned banks and the common credit rationing phenomenons make the financing of small and medium-sized enterprises tougher.The small medium-sized enterprises continue to seek the way to solve the problem of financing,SMEs continue to seek to solve the problem of corporate funds to raise the problem,and encourage private capital into the financial industry and other policies promulgated no doubt for enterprises to provide a solution.By equity investment,SMEs establish close contact with the small and medium-sized financial institutions to ease its financing constraints.This paper studies the financing difficulties of small and medium-sized enterprises from the perspective of social capital.In the study of social capital for the impact of financing constraints,the social network which is the main component of social capital is chosen as a starting point for research.This paper mainly explores the influence of small and medium-sized enterprises' shareholding financial institutions on their financing constraints,that is,whether the SME can alleviate the financing constraints faced by participating in financial institutions,so the social capital can also be called the relationship financing social capital.In addition,for the level of financial development in the area where the enterprise is located has both the influence on the scale and the intuition of acquiring the equity of the financial institutions,it can directly affect the level of financing constraint of the enterprises distributed in the region.Therefore,this paper introduces the financial development level as an influential factor to examine its impact on the social capital of relationship lending and the constraints of SME's financing.In this context,this paper first makes a theoretical review of financing constraints,social capital,social capital of relational financing and financial development,then explores the causes of financing constraints of small and medium-sized enterprises in China from both inside and outside,and then discusses the role of relational financing and financial development in helping enterprises to clear the financing obstacles.Finally,the paper discusses the discriminations towards the small and medium-sized enterprises(SMEs)from the establishments of large scales when financing.This paper chooses the mitigation effect of small and medium-sized enterprise's non-listed financial institutions to finance the small and medium-sized enterprises,and the moderating effect of the financial development level on the effect of the adjustment effect.In this paper,empirical models are established according to the cash-cash flow sensitivity model,which is based on the previous research results.The econometric model is used to explore the way that the relevant factors will influence the financial constrains of the SMEs.Another two models are made to adjust the moderating effect of financial development variable.The empirical results of this paper show that the SMEs holding non-listed financial institutions have lower financing constrains,and the financial development variable truly has a moderating effect on the relation between SMEs 'shareholding the unlisted financial institutions and alleviating its financing constrains.